Market Analysis

Washington, D.C., DC Multifamily Market

Cap rates, rent trends, and underwriting benchmarks for Washington, D.C. apartment investors.

4.8%
Avg Cap Rate
4.2% – 5.8%
Cap Rate Range
1.22x
Avg DSCR
$300,000
Price / Unit
$2,100
Avg Rent / Unit
6.2%
Vacancy Rate
+2.2%
YoY Rent Growth
690,000
Population

Market Trend

Government and defense contractor employment provide recession-resistant demand. NoMa, Navy Yard, and the 14th Street corridor are the top rental submarkets. Virginia suburbs (Arlington, Alexandria) trade at tighter cap rates. D.C.'s rent control ordinance applies to older buildings.

Lender Notes

Agency lending dominates. 1.20x DSCR typical. D.C. rent control and TOPA (Tenant Opportunity to Purchase Act) require specialized legal and underwriting expertise.

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